| Mergers and acquisitions |
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Editorial copy for Anglia Industry & Business By John Jardine, Director, LB Corporate Finance September 2008 Corporate marriages are just like any other. Every year, tens of thousands of companies decide to tie the knot. But the relationship doesn´t always go smoothly. Many mergers and acquisitions fail to deliver what those involved dreamed of when their betrothal was announced. Overall, estimates from McKinsey and others suggest that around two thirds of corporate marriages fall short of expectations. Some will end in very acrimonious - and often expensive - separations. The lesson is clear. When planning a corporate marriage, it´s best to do it with your eyes wide open. Due diligence is the key. It´s not just a matter of finding out that all the facts are on the table, but that every detail stands up to close scrutiny. Two years ago we launched our Corporate Finance boutique, precisely to meet that need. It´s designed to help our clients through the big financial aspects of business life – the ones that are not simply business as usual. The aim is to make it as easy as possible for our clients to set up a new business, negotiate a merger or acquisition, arrange management buy-ins or buy-outs, raise additional finance (and, should they wish, extract value from the business without share dilution). The boutique is led by several of our most senior staff: Richard Francis, Trevor Lake and Paul Mustoe and me. We are all highly-qualified accountants and bankers, and between us have worldwide experience of corporate business life. In my own case, it was gained throughout a career with Royal Bank of Scotland/NatWest (most recently as Regional Director, Commercial Banking, in the City and East London.) we´ve been involved in numerous corporate transactions and have come to fully understand, through personal observation, the traps and pitfalls that await the unwary. It is not surprising therefore, that we like to keep a very close eye on procedures. Expertise is everything at this level. So at LB Corporate Finance, we promise our clients that who they see is who they get. They´ll be advised by senior people throughout, although we will always draw on the specialist help of others where we see the need. we´ve recently established a "Stratford Deal Team", a team of like-minded individuals who are working closely together to deliver the best solutions for all of our clients. Whilst it is based in Stratford it is available to clients wherever their location. It includes the largest local commercial law firm, Bowling & Co, and senior bankers from RBS/NatWest. It means that the level of expertise normally only associated with The City is available much closer to home (and without the eye-popping price tags too!) It´s by no means an exclusive arrangement between the three parties, since each is free to work with other professionals. However it was born out of our mutual desire to work with tried and trusted colleagues in whom we have complete confidence. Our advice is clear: if you are contemplating a corporate marriage, then you shouldn´t be rushed into a shotgun wedding! Check out the talent, and then settle down with a sensible, long-term partner. Contact John Jardine or Mark Middleton, LB Group, Number One, Vicarage Lane, Stratford, London, E15 4HF. Tel: 0208 221 8282. Email:
Or: Stuart Sheldrick at LB Group, 129 New London Road, Chelmsford, Or Chris Annis, LB Group, 82 East Hill, Colchester, CO1 2QW. Tel: 01206 867551. Email: chris.annis@lbgroupltd.com |
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